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Civil · Reportable judgment

M/s Triveni Engineering and Industries Ltd. vs State of Uttar Pradesh & Ors.

Court
Supreme Court of India
Date
1 September 2025
Case No.
Civil Appeal No(s). 8119-8120 of 2022
Result
Allowed
Bench
Manoj Misra, Ujjal Bhuyan
Citation
[2025] 9 S.C.R. 300 : 2025 INSC 1060
Acts & Sections
National Green Tribunal Act, 2010 Environment (Protection) Act, 1986 Companies Act, 1956 Companies Act, 1913 Water (Prevention and Control of Pollution)… CPC
Supreme Court Reports [2025] 9 S.C.R. 300 : 2025 INSC 1060
Issue for consideration
Issue arose as regards the order passed by the National Green Tribunal imposing a compensation of ₹18 crores on the appellant for alleged environmental violations; and whether the tribunal adhered to fair procedure while conducting its proceedings.
Headnote

National Green Tribunal Act, 2010 – s.19 – Water (Prevention and Control of Pollution) Act, 1974 – ss.21, 22 – Environment (Protection) Act, 1986 – Environmental degradation – Environmental compensation – Power of the Control Board to take samples of effluents and procedure to be followed – Opportunity of hearing – Complaint against the appellant-engaged in sugar manufacturing alleging that the sugar mill of the appellant was discharging untreated waste in a particular drain resulting in contamination of ground water in an area of about one and a half kilometer around the sugar mill having depth upto 50 metres – NGT constituted a Joint Committee of Central Pollution Control Board (CPCB), Uttar Pradesh Pollution Control Board (UPPCB) and District Magistrate (DM) to conduct inspection – On basis thereof, NGT held that there was illegal disposal of untreated effluents, dilution at the outlet to conceal the real status, absence of monitoring, absence of record of oil and grease stored and ETP logbook, compensation of Rs.18 crores at the rate of 2 percent of annual turnover would be justified and that the compensation recovered may be utilized for restoration of the environment – Legality:

Read the full headnote (1 more paragraph)

Held: Impugned orders are in complete violation of the procedures laid down in the ss.21 and 22 of the 1974 Act, 1986 Act, and the 2010 Act, including s.19 thereof – Impugned decisions which entail adverse civil consequences upon the appellant were passed without following the due procedure laid down under the statute as well as the elementary principles of natural justice – Thus, such orders are illegal and null and void – NGT exercises judicial functions – Thus, it is all the more necessary for the NGT to adhere to a fair procedure which is statutorily laid down of which principles of natural justice are an inalienable part – Rigor of s.19(1) of the 2010 Act is qua the procedure to be adopted by the NGT in conducting its proceedings – It cannot be stretched to abandon the statutory procedure laid down u/s.21 and 22 of the Water Act and by outsourcing investigation to administrative committees by overlooking the statutory provisions and basing its decisions on the recommendation of such administrative committee – This is not within the remit of NGT – In the quest for doing justice, NGT has ended up doing just the reverse – Ordinarily, in a case where there is violation of the principles of natural justice, parties are relegated to the adjudicatory forum to re-do the exercise after following the due process – However, the entire exercise has been vitiated because of non-conforming to the laid down procedure contemplated u/ss.21 and 22 of the 1974 Act – Relegating the parties back to the NGT would serve no useful purpose – However, UPPCB free to carry out inspection and take remedial measures qua the sugar mill of the appellant by following the statutory procedure, including adherence to the principles of natural justice – Impugned orders passed by the NGT set aside. [Paras 30-34]

Keywords: Environmental degradation · Environmental compensation · Opportunity of hearing · Sugar manufacturer · Discharging untreated waste · Contamination of ground water · Joint Committee · Inspection · Illegal disposal of untreated effluents · Absence of monitoring · Absence of record of oil and grease stored · ETP logbook · Compensation of Rs.18 crores at the rate of 2 percent of annual turnover · Restoration of the environment · Principles of natural justice

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Ujjal Bhuyan, J. These two civil appeals filed under Section 22 of the National Green Tribunal Act, 2010 are directed against orders dated 15.02.2022 and 16.09.2022 passed by the National Green Tribunal, Principal Bench, New Delhi (‘NGT’ for short) in Original Application No. 71/2021 (Chandra Shekhar Vs. State of Uttar Pradesh). 2. By the order dated 15.02.2022, NGT held that the project proponent (appellant herein) had violated the environmental norms which included illegal disposal of untreated effluent, dilution at outlet with fresh water to conceal real status, absence of flow
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